“On
one hand, the government had been pushing the RBI to reduce lending rates.

On
the other hand, RBI has decided to maintain the current level, indicating
cautiousness due to the rising rate of inflation. A rate cut would have had a
positive impact on real estate since home loans would then have become even
cheaper.

However, certain other global factors, beyond the purview of real
estate, are at play which have caused the RBI to keep rates put.”